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Mathematics, 05.05.2020 06:53 25jzaldivar
An insurance company has examined a random sample of 190 automobile accident claims for fraud. A logistic regression model is fitted to this data with the dependent variable being coded as one for a case that was fraudulent, and as zero otherwise. The five independent (predictor) variables included in the model are: – i . CityCode : =1 if the claimant lived in a large city, =0 otherwise; – ii. SexCode :=1 for males, =0 for females; – iii. Age in years; – iv. FaultCode :=1 if the fault in the accident was that of the policy holder, =0 otherwise; – v. Deductible Amount (in dollars). The model estimate for the logarithm of the odds of fraud is: 53.119 - 0.081×CityCode + 0.367× SexCode + 0.060×Age - 1.738× FaultCode - 0.142×Deductible Amount Situation: The insurance company has a claim by a male policyholder ages 30 years, who lives in a large city, has a deductible of $400 and who was not at fault in thr accident, Question: Calculate the odds, probability, and logit of fraud for this situation. Probability of Fraud Logit of Fraud Odds of Fraud Probability of "No Fraud"
A. o.168
B. -1.595
C. 0.203
D. 0.832
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An insurance company has examined a random sample of 190 automobile accident claims for fraud. A log...
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